Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committees on Human Services and Housing and Water and Land Use, to which was referred S.B. No. 1017 entitled:

beg leave to report as follows:

The purpose of this bill is to make lessees who abandon eminent domain proceedings by the Housing and Community Development Corporation of Hawaii (HCDCH) solely responsible for costs incurred by a lessor.

HCDCH testified in support of this measure.

Under existing law, HCDCH is authorized to institute eminent domain proceedings to acquire leased fee interests in development tracts within 12 months of the designation of the tract to be acquired. If eminent domain proceedings are not instituted within the 12-month period, HCDCH is liable for certain expenses incurred by the lessor.

This measure removes HCDCH as the "middle person" and places direct responsibility for payment of the lessor's costs upon the lessees.

As affirmed by the records of votes of the members of your Committees on Human Services and Housing and Water and Land Use that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1017 and recommend that it pass Second Reading and be referred to the Committee on Finance.